Shares of Ucore Rare Metals (UCU.V) surged 14.7% on Friday, closing at C$7.97 on the TSX Venture Exchange. This sharp rebound followed a 13% decline the previous session, with trading volume reaching approximately 525,000 shares.
The rally occurred alongside a significant 1.5% gain for Canada's primary stock index, marking its strongest single-day performance since October. The materials sector, heavily weighted with mining companies, soared 3.9%, driven by a substantial 4.8% increase in gold prices.
Market analysts attributed the movement to a relief rally in metals and growing investor attention on critical minerals policy. Recent discussions in Washington and Ottawa regarding strategic stockpiles and coordinated price floors have kept rare earth equities in focus. These elements are essential for electric vehicles, semiconductors, and defense technologies, sectors where supply remains concentrated.
Ucore, which focuses on rare earth extraction and separation technology, is developing a commercial refinery in Louisiana. Other companies in the space also saw gains, with USA Rare Earth (USAR) finishing the week about 6% higher and Critical Metals (CRML) advancing roughly 3%.
The sector's sensitivity to policy headlines means volatility may persist. Traders are now watching to see if Friday's momentum holds into next week and whether new details on supply chain initiatives emerge.
